His response was as unvarnished as it was accurate: “Bullshit. Sorry, it’s bullshit.”(you can listen at 27 minutes 41 seconds in the documentary). He quickly outlined the reality that politicians in Brussels prefer to ignore: German manufacturers produce heavily in China, and European and Chinese automotive supply chains are inextricably linked through deep-rooted joint ventures.

Yet a growing disconnect has emerged between policymakers in Brussels and the industrial realities they aim to shield. Instead of heeding Reindl's reality check, the European Union has quietly erected a formidable wall of regulatory barriers. The battleground in the China-EU economic relationship has effectively shifted from macro-level diplomatic friction to a quiet, attritional struggle over compliance.

The EU's Foreign Subsidies Regulation (FSR) has become the instrument of choice. In early 2024, the mere initiation of a deeply invasive FSR probe forced the Chinese rolling stock manufacturer CRRC to withdraw from a €610m electric train tender in Bulgaria. Fast forward to April 2026, and the EU went a step further, conditioning the approval of Lisbon’s ‘Violet Line’ metro project on the explicit exclusion of its Chinese subcontractor.

This defensive scrutiny is now spilling rapidly from public infrastructure into private commerce. The EU has recently launched an FSR probe into JD.com’s proposed €2.2bn acquisition of Ceconomy, the German parent company of MediaMarkt and Saturn. Concurrently, Brussels slapped a record €200m fine on the cross-border e-commerce platform Temu under the Digital Services Act (DSA). The message is unambiguous: Europe is abandoning its long-held free-market principles in favour of administrative strangulation.

The Irony of Europe’s ‘Section 301’ Drift

There is a profound historical irony in this pivot. For decades, the EU was the primary victim of unilateral American trade bullying, most notably through Washington's notorious Section 301 investigations. From digital service tax disputes to the endless Boeing-Airbus subsidy saga, European leaders consistently championed the World Trade Organization’s multilateral dispute mechanisms over unilateral aggression.

Today, however, under the guise of "economic security," Brussels is forging its own Section 301 toolkit. By weaponising the FSR, the EU bypasses the WTO entirely, relying instead on domestic administrative powers to enforce a presumption of guilt upon foreign competitors. The former defender of globalised free trade is now actively dismantling it.

Overcapacity?

To justify this protectionist fortress, Western policymakers have coalesced around a singular, politically convenient buzzword: overcapacity. The narrative dictates that China’s competitive edge in green technology is purely the result of unfair state subsidies.

It is a narrative that fundamentally fails the logic test. Carl Bildt, Co-Chair of the European Council on Foreign Relations and former Prime Minister of Sweden , recently punctured this rhetoric with brutal clarity: "I find the concept of 'overcapacity' ridiculous. Does Germany have an overcapacity in cars? France one in wine? Sweden in heavy trucks? Italy in fashion? And don’t tell me that European food exports aren’t subsidised."

Bildt’s observation exposes a glaring double standard. Decades ago, when German and Japanese automotive titans leveraged their absolute dominance in internal combustion engine (ICE) technology to aggressively enter and dominate the nascent Chinese market, the West proudly called it "comparative advantage." Today, when China achieves the same via a 20-year strategic bet on battery technology and extreme vertical integration-honed in the most fiercely competitive domestic market on earth-that identical comparative advantage is suddenly branded a "national security threat." 

The reality of inflation

More concerning is that this defensive policy stance is generating negative spillover effects on broader macroeconomic objectives. Europe has long positioned itself as a model in advancing the global climate agenda. Particularly following the outbreak of the Russia-Ukraine conflict, the reshaping of Europe’s energy supply chains has become exceptionally urgent. Securing affordable and efficient green energy and related technologies is not merely a prerequisite for achieving its ambitious decarbonisation targets; it is also critical for curbing inflationary pressures and stabilising the broader economy.

The industrial advantages and economies of scale that China has amassed in the new energy sector - spanning photovoltaics, batteries, and electric vehicles (EVs) - could have offered robust support for Europe’s green transition. There exists immense potential for deep cooperation between the two sides in technological exchange and supply chain integration. However, the proliferation of trade barriers and compliance scrutiny is increasingly undermining this prospect. Sacrificing long-term climate cooperation for the sake of short-term industrial defence essentially inflates Europe’s own decarbonisation costs artificially, and risks delaying the region’s progress in reining in inflation.

200,000 tonnes of pork for a lithography machine

Beneath the rhetoric of "overcapacity" lies the EU's persistent complaint regarding its trade deficit with China. However, resolving a trade imbalance requires expanding the pie of high-value exports, not shutting the door to affordable imports.

The structural truth of the China-EU trade imbalance can be captured in a stark, brutal arithmetic: it takes the export of approximately 200,000 tonnes of European pork to equal the profit generated by the sale of a single high-end ASML lithography machine to China.

Europe cannot have it both ways. It cannot blindly follow Washington's export control regime - cutting off its most lucrative, high-tech exports to China under the expansive umbrella of "national security" - and then complain that its trade ledger is unbalanced because it is only selling luxury goods and agricultural products in return. You cannot refuse to sell your partner the technology they want to buy, and then cry foul when they sell you the green industrial goods you desperately need.

The China-EU economic relationship is fundamentally complementary and mutually beneficial. Retreating behind a regulatory wall of FSR probes and tariffs is not a strategy for economic resilience; as Stefan Reindl pointed out, it is simply "bullshit" that masks a deeper confession of industrial inertia. To truly secure its economic future, Europe must muster the courage to face market competition and confidently resume high-tech, free trade.

Du Yubin is a journalist and producer for CGTN. He was stationed in Washington, D.C. and London for six years each, focusing on China-US and China-EU relations. He has over 16 years of experience in international communication and new media . The views expressed in this opinion article are the author’s own.

Image via depositphotos.com

Under the new arrangement, zero levies will apply to all African countries except Eswatini, which maintains diplomatic relations with Taiwan.

China considers Taiwan part of its territory and has not ruled out the use of force to assert control over the island.

China is Africa’s largest trading partner and supports major infrastructure projects across the continent through its Belt and Road initiative.

Several African countries have increasingly turned to China and other trading partners after US President Donald Trump imposed steep tariffs worldwide last year.

Announcing the implementation date as African leaders gathered in Ethiopia for the annual African Union summit, Xi said the zero-tariff deal “will undoubtedly provide new opportunities for African development.”

Ecuador’s Olympic Committee (COE) warned that the country is close to facing a possible Olympic suspension due to alleged state interference in sports governance . The alert follows a conflict between the COE and Fedeguayas, after government pressure linked to leadership disputes within the federation. COE officials argue that state involvement violates the principle of autonomy required by the International Olympic Committee (IOC). They cautioned that continued interference could lead to sanctions, including exclusion from international competitions. Authorities have not ruled out dialogue, but tensions remain unresolved.

Ecuador reviews Colombia’s account of foreign ministers’ meeting

Ecuador’s government said it is analysing Colombia’s version of a recent bilateral meeting between foreign ministers, which outlined commitments on security cooperation, energy integration and tariff issues. Quito stressed the importance of coordination on cross-border security, particularly in the fight against organised crime. Officials highlighted energy collaboration and trade as shared priorities, while underscoring Ecuador’s interest in concrete follow-up mechanisms. The statement reflects cautious diplomacy as both countries seek to balance cooperation with national interests.

Messi sparks excitement as Inter Miami arrives in Guayaquil

Argentine football star Lionel Messi was enthusiastically welcomed by fans in Guayaquil ahead of a friendly match between Inter Miami and Barcelona SC, dubbed the “Match of History ”. Supporters gathered outside the Oro Verde Hotel, praising Messi’s legacy and expressing excitement at seeing him play in Ecuador. Authorities deployed a special security operation due to the scale of public interest. The match, part of Inter Miami’s South American tour, is expected to feature players such as Luis Suárez and Rodrigo De Paul, drawing significant attention nationwide.

Prison authority cites improvements at Penitenciaría del Litoral amid health concerns

Ecuador’s prison authority SNAI said it is implementing improvements in food provision and infrastructure at the Penitenciaría del Litoral following reports of sanitary problems. Officials claimed measures are underway to address hygiene, overcrowding and basic services at the facility. The prison has been at the centre of repeated crises, highlighting structural weaknesses in the penitentiary system. SNAI insisted that reforms are ongoing, though concerns from inmates’ relatives and human rights groups persist.

Scientist documents Ecuador’s butterflies after three decades of research

Entomologist Keith Willmott has spent more than 30 years studying Ecuador’s butterflies, documenting species with transparent wings and others affected by forest fires . His work combines field research and conservation science, contributing to global understanding of biodiversity in Ecuador’s ecosystems. Willmott has highlighted how habitat loss and climate change threaten butterfly populations. His research underscores Ecuador’s role as a biodiversity hotspot and the importance of long-term scientific study for conservation efforts.

He emphasised that Cuba does not view the American people as adversaries and highlighted past areas of cooperation between the two countries, including in science, culture, health, sports and religion. According to Díaz-Canel, previous exchanges have shown that there are shared interests where both sides can work together when conditions allow.

The Cuban leader also criticised recent US measures, including tariffs authorised by President Donald Trump on countries supplying oil to Cuba, describing them as an effective energy blockade with serious economic consequences. His comments come after Washington announced new restrictions in January, amid growing tensions and renewed rhetoric over Cuba’s economic crisis and energy shortages.

The concerns come amid rising trade tensions between the two neighbouring countries. Ecuador recently announced a 30 per cent security tariff on all Colombian imports, citing insufficient cooperation on cross-border crime, including drug trafficking and illegal mining. Colombia responded by suspending electricity exports to Ecuador and imposing its own tariffs on a range of Ecuadorian goods, including rice.

Producers argue that Ecuador would bear the brunt of the dispute. While Colombia could source rice from alternative suppliers or rely on subsidised domestic stocks, Ecuadorian farmers have fewer options to redirect their exports. Industry representatives warn that uncertainty over access to the Colombian market is already discouraging some growers from planting new crops.

The impact could extend beyond farmers themselves. Ecuador relies heavily on Colombian imports such as fertilisers, plastics and vehicle parts, creating an imbalance that leaves rural communities particularly exposed to trade disruptions. With the tariffs set to take effect on 1 February, agricultural groups fear the measures will add to the economic strain faced by farm workers and small producers in one of Ecuador’s most important farming regions.

Why it matters

What’s in it for India

What’s in it for the EU

What’s driving the push now

What they said

Geopolitics behind it

What happens next

Once concluded, the India–EU FTA would mark a rare moment of trade liberalisation in a protectionist era — binding two uneasy but increasingly aligned partners as global commerce splinters.

Ecuador’s government, led by President Daniel Noboa, announced the tariffs earlier this week, framing them as a response to what it described as a lack of reciprocity from Colombia on security cooperation. The measure affects a range of Colombian products and adds strain to an already delicate bilateral relationship.

“We sold them energy when they needed it,” Petro said, referring to electricity exports provided since late 2024. He added that now Ecuador’s situation has stabilised, the decision appeared driven more by political alignment than by regional solidarity, criticising what he described as diplomacy based on confrontation rather than cooperation.

Colombia and Ecuador maintain close economic and security ties, sharing a long and porous border that has required joint efforts against organised crime and smuggling.

Supporters of the bill, largely from government-aligned parties, argued that the higher import duties are necessary to protect domestic industries from what they described as unfair competition, particularly from China.

They said the country is flooded with artificially low-priced goods sold below production cost, undermining Mexican producers.

“The bill focuses on 17 strategic sectors and 1,463 tariff items… A significant part of these imports comes from countries with which we do not have a trade agreement, particularly China, where the deficit is excessive,” said Senator Imelda Sanmiguel Sánchez of the National Action Party.

However, opposition lawmakers criticised the move, accusing the government of acting under pressure from Washington ahead of next year’s scheduled review of the USMCA trade pact.

Cristina Ruiz Sandoval of the Institutional Revolutionary Party warned that tariffs alone would not solve deeper structural issues. “Can a tariff package correct a structural investment problem? Can tariffs attract capital, generate confidence and move companies toward value-added sectors? The answer, unfortunately, is no,” she said.

Economists had expected a slightly stronger reading of 49.4, and while the figure is an incremental improvement from October, it highlights the depth of the slowdown. 

Industrial output this quarter has posted its weakest gains since early 2025, reflecting falling export orders and nervous domestic spending.

The latest survey also showed that activity across construction and services slipped into contraction for the first time in nearly three years. The non-manufacturing PMI fell to 49.5 in November, from 50.1 the month before, dragged down heavily by the property sector and residential services.

What’s behind the slump?

The data paints a picture of an economy losing momentum on multiple fronts. 

Retail sales growth has slowed for five consecutive months — the longest decline since the early Covid-19 lockdowns — signalling that consumers remain cautious despite government efforts to revive demand. 

Job uncertainty, falling house prices and weak confidence are weighing on household spending.

Trade strains continue to cloud the outlook. Exports unexpectedly contracted in November as global demand failed to compensate for a steep fall in shipments to the United States . 

Although tensions eased slightly after a temporary truce was struck in South Korea in October between Presidents Donald Trump and Xi Jinping, key issues — including controls over rare earth exports — remain unresolved, leaving the deal fragile.

Relations with Japan have also deteriorated, adding another layer of uncertainty. A diplomatic dispute in recent weeks has prompted Beijing to consider economic countermeasures, raising concerns over further disruption to regional supply chains.

Bright spots

There are pockets of resilience: high-tech manufacturing stayed in expansion territory at 50.1 for a tenth month, and sentiment indicators show some improvement. The index measuring expectations for production and operations climbed to 53.1, with aerospace equipment and non-ferrous metals reporting confidence levels above 57.

Smaller firms also showed signs of recovery, with the PMI for small enterprises jumping two points to 49.1 — the strongest reading in nearly six months. But large manufacturers, which drive the bulk of industrial output, weakened to 49.3, signalling uneven recovery across sectors.

The weak readings follow a bruising period for industry. Industrial profits fell 5.5% in October, the sharpest decline since June, and the property slump continues to erode demand for construction materials and household goods. Services activity, which had been buoyed by the October Golden Week holiday, has now given up much of that boost.

For policymakers, the dilemma remains familiar. 

Beijing has resisted launching major stimulus, arguing that growth is still on track to meet the government’s 5% target for the year. But with output stagnating and demand still faltering, pressure is growing for clearer support measures — and confidence that China’s manufacturing engine can restart after months of sputtering.

Under the deal with Argentina, the US plans to lift tariffs on certain pharmaceutical ingredients and other goods, while Buenos Aires agrees to open its market further to US exports of vehicles, medical devices and other items. For Ecuador, Guatemala and El Salvador, the focus is more on removing non-tariff barriers, such as digital services taxes, intellectual property rules and food-safety standards, rather than sweeping tariff cuts.

Although these frameworks promise “tariff relief for certain exports” rather than a full elimination of duties, they reflect Washington’s strategy to deepen economic ties with Latin America amidst global competition for influence. The agreements also tie into a broader agenda of “friend-shoring” and reinforcing alliances as the US looks to diversify away from reliance on specific global trading partners.

However, the move has drawn scrutiny from domestic and international observers, who are watching how the benefits will trickle down—both in the US, where consumers hope for lower prices, and in Latin American states, where the deals raise questions about the balance between sovereignty, trade liberalisation and mutual gains.

The remarks followed a phone conversation between Trump and Lula earlier this week, marking the first direct contact between the two since Trump returned to office. “He’s going to come here, and I’ll go to Brazil at some point,” Trump told journalists, signalling plans for reciprocal visits that could revive long-stalled cooperation between the two countries.

Relations between the United States and Brazil have been strained since Trump imposed steep tariffs on Brazilian goods in August. The move came after Brazil’s Supreme Court sentenced former president Jair Bolsonaro — one of Trump’s closest allies in Latin America — to more than 27 years in prison for his alleged role in the 2023 coup attempt.

Lula, who has repeatedly condemned foreign interference in Brazil’s judicial affairs, previously warned Washington to “respect Brazil’s sovereignty.” Despite the sharp rhetoric, both leaders now appear open to rebuilding economic and diplomatic ties, a shift that could reshape the regional balance of power in the Americas.

Lula was joined by Vice President Geraldo Alckmin, Foreign Minister Mauro Vieira, Finance Minister Fernando Haddad, and senior adviser Celso Amorim. The discussion was scheduled following a brief greeting between the two leaders on 23 September during the UN General Assembly in New York .

The Brazilian government’s main objective was to address the 50% tariffs affecting a wide range of Brazilian exports, measures introduced by Trump in response to the Supreme Court of Brazil sentencing former President Jair Bolsonaro to 27 years in prison. Bolsonaro, a key ally of Trump in Latin America , had long been a contentious figure in bilateral relations.

Foreign Minister Vieira stressed that Lula’s intention was to negotiate the tariffs alone, without questioning Brazil’s sovereignty or the authority of its judiciary. “Political reasons related to Supreme Court decisions have no place in negotiations between sovereign states,” Vieira stated, highlighting that the US has historically benefited from the bilateral trade balance over the past 15 years.

The conversation marks a first step in restoring dialogue on economic matters between Brazil and the United States, with Lula seeking to protect Brazilian exports while maintaining a constructive and amicable tone in relations with Washington.

In a statement on Thursday, China’s Ministry of Commerce warned that the Mexican measures could harm the interests of affected nations. “China believes that, in the context of the current abuse of tariffs by the United States , all countries must jointly oppose unilateralism and protectionism, and must not sacrifice the interests of third parties due to coercion”, the ministry said. Beijing also announced a separate anti-dumping investigation into pecans imported from Mexico and the US.

China is Mexico’s second-largest source of imports after the United States, with trade worth $130 billion in 2024. Other countries likely to be affected include South Korea, Thailand , India, the Philippines and Indonesia. It remains unclear whether Beijing’s investigation will lead to concrete action, but under trade rules, such probes can trigger bilateral consultations or multilateral negotiations before escalating further.

The discussions come as Botswana races to protect its diamond exports from crippling U.S. tariffs, which were slashed from 37% to 15% in April. Botswana President Duma Boko warned in July that “these punitive measures threaten the sustainability of Botswana’s diamond industry and present a serious obstacle to broader economic growth across Africa.”

While officials insist negotiations are ongoing, there are fears the trade-off could weaken local beneficiation efforts, undermine partnerships with companies such as Debswana, and compromise transparency by bypassing parliamentary debate, Africa Relief reports.

A document titled “Botswana Strategic Bilateral Engagement on U.S. Reciprocal Tariffs” outlined not only mineral access but also U.S. investment opportunities in energy, technology, infrastructure, and health. The government pledged to ease entry through its One Stop Service Centre, reduce non-tariff barriers, and align with U.S. product standards. 

In return, the US promised to share a framework of its specific trade concerns. The general fear is that granting “first-mover rights” to American companies risks sidelining local communities and breaching mineral rights laws.

Professor Kekgaoditse Suping of the University of Botswana argued that while tariff relief could shield jobs and strengthen Botswana’s role in the green economy , safeguards on skills transfer, equity participation, and accountability are essential.

Officials, however, have downplayed the controversy. Trade Minister Ntsima dismissed concerns as “speculative” and cited a non-disclosure agreement preventing further detail. Permanent Secretary Joel Ramaphoi stressed that the government remains confident in securing full tariff elimination.

Bolsonaro’s lawyers announced plans to appeal the Supreme Federal Court ruling, describing the sentence as “absurdly excessive and disproportionate”. They also indicated they may take the case to international courts.

The conviction has sparked diplomatic friction, particularly after former US President Donald Trump denounced the ruling as a “witch hunt” and imposed a 50% tariff on Brazilian products in protest. Trump also compared Bolsonaro’s case to his own legal battles, claiming both were victims of political persecution. Lula responded firmly: “This country is an example of how democracy is practised”.

US Secretary of State Marco Rubio echoed Trump’s remarks, calling the verdict “unjust” and warning that Washington would “respond accordingly”. Meanwhile, Bolsonaro’s supporters in Brazil and the US continue to demand an amnesty, while protests in Brazilian cities show a divided public opinion between calls for his release and rejection of a pardon.

On trade, Vieira criticised Washington’s recent tariff hikes on Brazilian goods, labelling them “clearly political”. He said a US official privately admitted the measures were not based on commercial reasons, urging Brazilian business leaders to lobby against them.

“There is no economic basis for these tariffs”. Vieira said, noting Brazil runs a $25 billion annual trade deficit with the US and already applies lower duties on American products than Washington imposes on Brazilian exports.

Vieira warned that if new sanctions are introduced under Trump, Brazil could use its recently approved Reciprocity Law, which allows retaliatory tariffs against countries using trade measures “for political or other purposes”.

Despite the tensions, Vieira said Brazil remains open to dialogue but reiterated that Bolsonaro’s conviction is not negotiable. “He is condemned and will serve his sentence. This is in the hands of justice, and nothing can be done”, he stated.

Brazil has already cut its 2025 growth forecast from 2.5% to 2.3%, citing high interest rates and the potential negative impact of US tariffs.

“These are not coercive measures, and they are not against China. It is a decision made based on the strengthening of our economy ," she said. "This is not directed against any particular country."

If approved, the measure would raise tariffs on a wide range of products, including Chinese automobiles, auto parts, textiles, steel , footwear, furniture, cosmetics, paper, and glass. The changes would affect approximately 19 sectors and 1,463 tariff fractions—different product classifications for trade purposes—impacting import volumes totalling about US$52 billion, or roughly 8.6% of Mexico’s total imports. The average tariff for these goods would jump from roughly 16.1% to 33.8%, with automobiles potentially seeing duties rise from around 20% to the WTO-allowed maximum of 50%.

The government frames the move as a way to strengthen Mexico’s internal production base, encouraging domestic manufacturing over imports, while also addressing trade imbalances and reducing dependency on foreign goods, particularly from Asian countries lacking trade agreements with Mexico. Congress approval is required for the proposal to take effect, though the ruling party, Morena and its allies currently hold a majority in both chambers, increasing the likelihood of passage.

Several Asian countries would be affected, including China, India, Indonesia, South Korea, Thailand, and Turkey. Mexico insists that the plan complies with World Trade Organisation rules, raising tariffs only “up to the maximum allowed”. In response, China criticised the proposal, calling it an unjustified trade restriction and suggesting Mexico is yielding to external pressure, implicitly from the United States . Mexican officials have denied any geopolitical motive, emphasising instead the economic rationale and the goal of industrial strengthening.

Economists and trade analysts warn that the proposal carries potential risks, including short-term inflation as higher tariffs typically raise consumer prices, the possibility of diplomatic friction with affected countries, and implications for Mexico’s trade relations with the United States, particularly given ongoing concerns about cheap imports and trade “leakage” within the North American trade ecosystem.

“Our negotiations with the United States are continuing,” Ramaphosa said. “Let’s be clear, South Africa is not the only country that is dealing with this crisis, and many others are in a much worse situation than we are.”

The U.S. tariff proposals have raised concerns among South African industries that depend heavily on American markets. Ramaphosa noted the economic stakes.

“We’ve got to respond to the United States tariff proposals. Many of our companies deal with United States customers,” he said. “We export vehicles, we export steel and aluminium, we export citrus. So we’ve got to engage with them and find a way to reach a settlement.”

He added that there was still time to resolve the issue through dialogue. “Within the window that’s still open, we’re hoping that we will find a way to settle this matter. So intensive negotiations are now underway.”

Asked whether the U.S. was approaching the talks rationally, Ramaphosa offered a diplomatic response noting that, “It’s not for me to comment on whether we’re dealing with people who are rational or not. We deal with every government with the required respect and dignity, and we expect that respect to be reciprocated.”

Ramaphosa also acknowledged South Africa’s position on the continent as a major exporter, saying, “We are the largest and most industrialised economy in Africa. Obviously, we will be a target because we export more than many other countries. So our task is to negotiate, strongly and as hard as we can, with the United States.”

The United States and Pakistan announced a trade deal Thursday, which Islamabad said would boost investment and reduce tariffs, though exact rates weren’t disclosed. Pakistan's finance ministry called it the start of a new era of economic cooperation across sectors like energy, IT, crypto, and mining. Finance Minister Muhammad Aurangzeb said the agreement reflected broader strategic goals beyond trade. Previously facing a possible 29% tariff, Pakistan secured a suspension ahead of the August 1 trade talks deadline, aiming for better terms than regional competitors like Vietnam (20%) and India (threatened with 25%).

Intel says Pakistan is rebuilding terror camps

Pakistan is allegedly reviving terrorism infrastructure with a new approach, an intelligence report reveals. The Pakistan Army, ISI, and other agencies are reportedly aiding major terror groups in reconstructing at least 13 camps and launchpads destroyed in Operation Sindoor, especially near the Line of Control in PoK and the Jammu border. Sites named include Kel, Shardi, Dudhniyal, Lipa Valley, and Jura, among others. Four launchpads near Jammu — Masroor, Chaprar, and a drone hub in Shakargarh — are also being reactivated using advanced techniques and funding from state entities.

Olympian killed in climbing accident

Olympic gold medallist Laura Dahlmeier died after being struck by falling rocks while climbing Laila Peak in Pakistan’s Karakoram range, officials said Wednesday, July 30. Bad weather delayed rescue efforts, and her body has not been recovered. Her partner survived, and local authorities said any recovery attempt would respect her family’s wishes. An Instagram post stated Dahlmeier did not want anyone to risk their life retrieving her body. German President Steinmeier paid tribute, calling her an “exceptional sportswoman” and recalling awarding her the Silver Laurel Leaf in 2018.

Pakistan keeps key rate unchanged to curb inflation

Pakistan’s central bank kept its key rate at 11% on Wednesday, defying expectations of a cut due to worsening inflation driven by higher energy prices. The State Bank cited rising gas costs and a widening trade deficit as key risks, noting that inflation pressures had intensified. All 15 analysts in a Reuters poll had predicted a rate cut. Central Bank Governor Jameel Ahmad said it was prudent to wait rather than risk reversing a premature easing move.

Pakistan repeats claims of 'resounding success' in Operation Sindoor

Pakistan dismissed India’s Operation Sindoor statements in the Lok Sabha on Wednesday, July 30, as “baseless and provocative,” accusing New Delhi of spreading disinformation and jingoism. It reiterated claims of military success and warned Indian leaders to acknowledge their losses and third-party roles in the ceasefire. Islamabad also alleged India lacked evidence for the Pahalgam attack and failed to meet strategic goals, while praising its military response as decisive.

Speaking at an event in Rio de Janeiro on Monday, Lula aimed to counter U.S. ambitions regarding so-called “critical minerals,” resources increasingly vital to global energy and defence industries.

Lula’s remarks follow media reports of U.S. attempts to secure privileged access to mineral reserves in strategic regions, including Ukraine and Latin America . He emphasised that Brazil’s sovereignty over its natural wealth is non-negotiable and not subject to outside pressure.

The Brazilian leader also addressed looming U.S. trade tariffs of up to 50% on Brazilian exports, imposed under the pretext of “unfair treatment” toward former President Jair Bolsonaro — a move Lula slammed as “unacceptable blackmail.”

Lula, a veteran of global diplomacy , referenced his past dealings with a range of U.S. political figures — from Bill Clinton to Joe Biden — and called on Trump to adopt a more civil approach.

Per a recent graphic by World Visualized, Indonesia led stock index gained after the trade deal announcement -rising 4.1%, followed by Japan (3.3%), Vietnam (2.7%), Hong Kong (1.5%), Malaysia (1.2%), South Korea (1.1%), Singapore (1.0%), Taiwan (0.4%), Philippines (0.3%), China (0.2%), Pakistan (0.1%), with India slipping 0.1%.

Bloomberg Intelligence attributed the rally to renewed trade optimism. The U.S.–Japan deal, which imposes a 15% tariff on Japanese auto exports in exchange for Japan investing $550 billion in the U.S., trickled through Asian markets with expectations of broader agreements. 

Meanwhile, U.S. markets hit fresh highs as reports indicated a pending EU deal featuring 15% tariffs on most European goods, coupled with pledged EU investments and energy purchases in the U.S. 

Revenues in the U.S. energy and semiconductor sectors surged , while European automakers dropped on anticipated export restrictions . Strong corporate earnings further bolstered sentiment, pushing the S&P 500 and Nasdaq to record highs.

Analysts caution that despite broad gains, uncertainties remain over tariff enforcement and evolving trade negotiations with China and Mexico.

Bloomberg Intelligence noted that while tariffs may slow global growth and squeeze margins, the reprieve offered by these deals has provided markets crucial breathing space 

Speaking during an event in Osasco, São Paulo, on Friday, July 25, President Lula addressed Trump's remarks and rejected the basis for the proposed tariffs.

"If President Trump had called me, I would certainly have explained to him what is happening with the former president, and I would have explained why I have a good relationship with everyone… Bolsonaro is not being persecuted. He is being tried with full legal rights to a defence. He attempted a coup in this country,” Lula said.

Jair Bolsonaro, a former military officer who served as president from 2019 to 2023, has been accused of attempting to overturn the results of the 2022 presidential election, which he lost to Lula. Bolsonaro has denied the allegations and stated that he “never violated democracy or the constitution.”

Announced in a White House fact sheet and executive order on July 7, the extension delays enforcement of elevated reciprocal tariffs until August 1, while new country‑specific duties are formally placed by letters from President Trump to national leaders.

World Visualized’s recently published tables list reciprocal rates for more than two dozen countries. Among the changes:

Other nations featured in the World Visualized infographic include Serbia (35%, down from 37%) , Philippines (20%, up from 17%) , Brunei (25%, from 24%) , Moldova (25%, from 31%) , Algeria (30%, steady) , Iraq (30%, from 39%) , Libya (30%, from 31%) , Sri Lanka (30%, from 44%) , Brazil ( 50%, from only 10%) , Canada (35%, from 25%) , Mexico (30%, from 20%) , and the European Union (30%, from 25%).

High‑profile deals cut tariffs for key partners

In an April 2 Rose Garden address dubbed “Liberation Day,” President Trump unveiled sweeping reciprocal tariffs, including a 10% baseline duty plus higher country‑specific rates, describing them as a tool to rectify trade imbalances and incentivise reciprocity from trading partners.

However, key tariffs were paused on April 9 for a 90‑day negotiation window. That suspension was extended to August 1 to allow time for bilateral agreements with major partners like Japan, the Philippines, Indonesia , Vietnam, and the U.K.

Set to take effect August 1, 2025, the tariffs will impact seven countries, with Laos facing the steepest penalty at 40%, according to an infographic released by World Visualized and supported by reports from Reuters and Indonesia Business Post.

The new tariffs come amid heightened trade tensions and mark a significant escalation in Trump’s “America First” economic policy, aimed at reducing the U.S. trade deficit and discouraging transhipment practices through Southeast Asia.

Trump justified the action by accusing several nations, particularly Vietnam, of transshipping Chinese goods to evade existing U.S. tariffs.

Breakdown of tariffs by country

Trump, during an interaction with the press in front of the White House on July 15, announced that the USA now has full access to Indonesia and will pay nothing, while the latter will pay 19% tariffs for exporting into the USA.

"We have full access to Indonesia, everything, as you know, Indonesia is very strong on copper, but we have full access to everything. We will pay no tariffs. Uh, so they are giving us access to Indonesia, which we never had. That's probably the biggest part of the deal, and the other part is that they are going to pay 19%, and we are going to pay nothing. It's, I think it's a good deal for both parties, but we will have full access into Indonesia, and we have a couple of those deals that are going to be announced," he said.

The deal was finalised following a prolonged period of intense negotiations sparked by former President Donald Trump’s threat to slap a 32% tariff on a broad array of Indonesian exports starting August 1, 2025.

Earlier this year, Trump issued a formal warning that the tariff would take effect unless a bilateral accord was secured. For Indonesia, the stakes were high: the U.S. remains one of its most valuable trading partners, with a 2024 trade surplus of $14.37 billion, according to the International Trade Centre (ITC).

The country’s export portfolio to the U.S. includes strategic commodities such as palm oil, natural rubber, footwear, automotive tires, frozen seafood, and electronic parts, all of which faced potential disruption.

The new agreement with the Southeast Asian country comes just days after Trump announced a 30% tariff on EU exports, starting August 1.

Speaking outside the Oval Office, Trump stated, “We have full access to Indonesia, everything. As you know, Indonesia is very strong on copper, but we have full access to everything. We will pay no tariffs.”

He added, “They are giving us access into Indonesia, which we never had. That's probably the biggest part of the deal. And the other part is they are going to pay 19% and we are going to pay nothing.”

Indonesian President Prabowo Subianto, just 2 days ago, signed a separate free trade agreement with the European Union. That agreement, known as the Comprehensive Economic Partnership Agreement (CEPA), was concluded after a decade of negotiations.

Prabowo, speaking from Brussels, described CEPA as “not only about trade, it is about fairness, respect, and building a strong future together” for Indonesians.

Indonesia, the fourth most populous country in the world, is a major copper producer , ranking fifth globally in 2024 with 1.1 million metric tons of copper output. The country surpassed both the United States and Russia in production, reinforcing its role in the global copper market.

"There's a lot of untouched potential in our trade relationship, and therefore, this agreement comes at the right time because the new agreement will open new markets," she said during the joint press conference with Indonesian President Prabowo Subianto.

The EU president asserted that after 10 long years of talking with Indonesia, this is the best deal for both Europeans and Indonesians.

“After 10 years of negotiations, we have made a breakthrough. This new trade agreement will open up great opportunities for both our people ,” she added.

President Subianto, who represents over 280 million Indonesians, also shared that “For Indonesia, CEPA is not only about trade; it is about fairness, respect, and building a strong future together. The agreement must support our efforts to grow our industries, create jobs, and strengthen our sustainable development goals." 

The trade agreement comes just a day after US President Donald Trump announced 30% tariffs on EU exports, which will start on August 1. 

What they said

"It takes away from automakers and their Brazilian workers all the potential they otherwise would have," said Anfavea president, Igor Calvet, who also warned BYD to begin local production without further delays. "The main objective of the tariffs is to stimulate local production, promoting a gradual nationalisation of the country’s own supply chain for electromobility,” said Edgar Barassa, a researcher of electromobility and public policy at the University of Campinas in São Paulo.

Chinese automaker BYD outsold Tesla in battery-electric vehicle (BEV) sales across 28 European countries last month, marking its first lead over the U.S. firm in the region. According to data released Thursday by research firm JATO Dynamics, BYD sold 7,231 BEVs in April, narrowly surpassing Tesla’s 7,165 units. Despite the slim margin, analysts view the development as significant for Europe’s car market. JATO analyst Felipe Munoz described it as a “watershed moment,” reflecting growing European acceptance of Chinese EVs. BYD’s April sales rose nearly 170% year-over-year, far exceeding the overall EV market growth of 17%. The brand’s price advantage, despite existing EU tariffs, continues to appeal to cost-conscious buyers.

China urges investigation after Israeli troops fire on diplomatic delegation 

China has called for a full investigation into an incident in which Israeli soldiers fired on a diplomatic delegation in Jenin, in the Israeli-occupied West Bank. The Chinese Foreign Ministry condemned actions endangering diplomatic personnel and urged steps to prevent recurrence. Spokesperson Mao Ning emphasised the need for all parties, especially Israel, to avoid actions that could escalate regional tensions.

China says Taiwan is not a country 

China's Foreign Ministry on Thursday, May 22, rejected comments by Taiwan’s foreign minister, stating that it is "arrogant and ignorant" to call Taiwan a country. Spokesperson Mao Ning asserted that Taiwan has never been a state and reaffirmed that its future can only be determined by China's 1.4 billion people. China considers Taiwan a province with no right to statehood and has increased military and political pressure to reinforce this stance. The statement followed remarks by Taiwan’s Foreign Minister Lin Chia-lung, who said China lacks the authority to decide Taiwan’s status and expressed openness to dialogue with Chinese Foreign Minister Wang Yi.

Bill introduced to curb China’s tariff evasion through offshore production

U.S. representative for Texas and House Budget Chairman Jodey Arrington introduced the Axing Nonmarket Tariff Evasion (ANTE) Act on Thursday, which targets Chinese state-backed and subsidised entities that establish production in third countries to bypass U.S. tariffs. Arrington stated the legislation addresses long-standing unfair trade practices that have negatively impacted the U.S. economy and employment. "For far too long, adversaries like China have engaged in unfair trade practices, cheated the American economy, and cost the U.S. millions of jobs," Arrington said in a statement to Fox News .

China-Philippines maritime clash escalates tensions 

The Philippines has accused China of dangerously ramming and using a water cannon against its coast guard vessel near Sandy Cay in the South China Sea. Video evidence confirms a Chinese ship’s aggressive actions, which caused significant damage. China’s foreign ministry denied knowledge of the incident, while Philippine officials labelled it a “serious violation”. Filipino President Ferdinand Marcos Jr. warned that the country will not tolerate threats to its sovereignty. The incident has drawn international concern amid growing tensions in the disputed waters.

Brazil has lifted a temporary ban on tilapia fish imports from Việt Nam, months after suspending them over concerns about the TiLV virus. According to VietNam News , the Brazilian Ministry of Agriculture and Livestock said the risk of infection from Vietnamese tilapia fillets is negligible, following a risk analysis prompted by local industry concerns. The decision was made public in the official gazette and aligns with international health standards.

Brazil and US are negotiating the terms of understanding on tariffs

Brazil and the United States are in talks over tariffs, according to Brazilian Finance Minister Fernando Haddad. Speaking in Los Angeles, Haddad said he raised concerns about trade deficits in South America during a meeting with U.S. Treasury Secretary Scott Bessent, following new U.S. import tariffs announced last month. He described the discussions as constructive and ongoing, according to Reuters . 

Brazil’s economy can grow 3% annually

Brazil’s Finance Minister Fernando Haddad says the country can grow by an average of 3% a year, aligning with President Lula’s economic goals, Reuters reports. Speaking in Los Angeles, Haddad promoted a clean energy data centre policy to attract U.S. investment and said Brazil aims to strengthen ties with the Trump-led administration. 

Lula reaches 12 cabinet changes amid latest dismissals

Brazil’s President Luiz Inácio Lula da Silva has made two more cabinet changes, bringing the total to 12 since the start of his current term. Carlos Lupi resigned from the Social Security Ministry after a scandal, while Cida Gonçalves was removed from the Women’s Ministry. According to Guia da Folha , Lula has replaced ministers over corruption allegations, performance issues, and political realignment efforts. 

Mercosur-EU trade deal could boost Brazil exports of 180 products

Brazil could boost exports of up to 180 products to five EU countries if the long-delayed Mercosur-EU trade deal is ratified, a government agency has said . The Trade and Investment Promotion Agency (ApexBrasil) said the gains would mainly come from agricultural and industrial goods, while separate global trade tensions could also open new opportunities for Brazilian crude oil and other exports.

"I think that over time we will see that the Chinese tariffs are unsustainable for China," Bessent said . He noted that if tariffs are maintained, it could lead to significant job losses, up to 10 million.

However, a reduction in tariffs might still result in around 5 million jobs being affected. Bessent emphasised the trade imbalance, reminding that the U.S. imports far more Chinese goods than it exports in return.

"They sell almost five times more goods to us than we sell to them. So the onus will be on them to take off these tariffs. They're unsustainable for them," he added. This presents a challenging situation for Chinese policymakers as they weigh the economic fallout of the tariffs.

The backdrop to these comments dates back to President Trump's announcement in early April, when he instituted broad tariffs targeting several countries. His administration accused these nations of unfair trade practices. Just days later, tariffs on Chinese products rose sharply to 145%, while reciprocal tariffs for other countries were scaled back temporarily to 10%.

Bessent also hinted at an emerging trade deal with India and potential agreements with other Asian nations, indicating proactive steps in diplomacy. "They have been the most forthcoming in terms of doing the deals," he remarked. This follows Vice President JD Vance's earlier discussions with Indian Prime Minister Narendra Modi, which appeared promising for future economic cooperation.

Following Vance's visit to India, a statement released noted significant progress made towards a trade agreement that addresses both nations' economic goals.

“If you have to protect the economy , you're not winning. You're in defence. The U.S. is afraid of China because China is so productive, low-cost, hyper competitive,” Sachs said.

The remarks come amid a renewed Trump-led campaign for the White House, during which he has doubled down on his “America First” trade agenda. Trump has frequently claimed that the U.S. is “winning” against foreign competitors, particularly China, through tariffs and reshoring initiatives.

But Sachs dismisses this as superficial showmanship, arguing that the numbers and the global demand for Chinese goods tell a different story.

Sachs also took aim at U.S. claims that China suffers from “overcapacity,” a term used by American officials to describe what they view as China producing more than global markets can absorb. In contributing to the debate, Sachs stated, “That just means America has undercapacity. That’s all it means. The world needs what China can produce, and it wants it.”

“Trump is a good showman. He's filled with bluster,” Sachs added. “He says, ‘I'm a winner, we’re a winner,’ but what does it really mean when you have to win by imposing barriers against China?”

Meanwhile, Trump has hinted at a possible softening of his trade war stance with China, stating that the steep tariffs currently in place, some exceeding 145%, “will come down substantially, but it won’t be zero.”

During a tariff task force meeting, Ishiba emphasized the necessity of these measures, stating, "I have instructed cabinet members to make the utmost efforts to aid firms and households that have been worried about tariff impact". The tariffs posed by the U.S. could substantially affect crucial sectors of the Japanese economy, notably the automotive and steel industries.

To support small and mid-sized enterprises, which are particularly susceptible to economic fluctuations, the government plans to expand the eligibility criteria for low-interest loans from government-backed banks. Furthermore, officials are contemplating additional strategies to stimulate domestic consumption, contingent upon the extent to which U.S. tariffs affect Japan's expansive automotive sector.

Economy Minister Ryosei Akazawa mentioned that the financing for this package could come from a reserve fund, thus avoiding the need for an additional budget.

The imposition of steep tariffs by U.S. President Donald Trump on April 2—which initially included a 25 percent tariff on car and truck imports and a 24 percent tariff on all Japanese products (later adjusted to 10 percent for a three-month period)—has created significant market volatility. Akazawa, who is Japan’s leading trade negotiator, will be heading to Washington next week for another round of discussions regarding trade.

Significantly, Japanese media reported that Japan may explore increasing its soybean imports from the U.S. as part of these negotiations. Meanwhile, market reactions to the tariff situation have exhibited uncertainty, affecting countries globally, including Japan itself. Interestingly, after three days of rallying in U.S. markets, the Tokyo Nikkei index surged by 1.9 percent on Friday, fueled by speculations that the Federal Reserve might lower interest rates and that Trump could be softening his tariff strategies.

As South Africa holds the G20 presidency until November 2025, Kganyago faces the complex challenge of coordinating discussions among diverse members, including the U.S., China, and the European Union. This week, during the World Bank and International Monetary Fund ’s Spring Meetings, finance ministers and central bank governors gathered in Washington, where discussions of Trump’s tariffs were central, as confirmed by South African Finance Minister Enoch Godongwana.

It is noteworthy that the G20 did not release a communique or an official statement following the meetings, which is rather unusual. Kganyago remarked on the significant uncertainty affecting global financial markets due to these trade measures. He stated, "The negotiations taking place are very resource-intensive," highlighting the challenge of moving forward under the current circumstances.

Furthermore, he advocated for a return to a multilateral trading system, underscoring the importance of the World Trade Organization in facilitating these discussions. The current environment necessitates urgent attention to trade relations, which remain delicate and fraught with unpredictability.

Historically, Tesla has sought to sell automobiles in India's thriving market; however, the exceptionally high tariffs have hindered these plans. Elon Musk has remarked that these tariffs are among the most prohibitive globally. Despite these obstacles, Tesla is progressing; it has finalized showroom locations and is actively recruiting in India, suggesting imminent market entry.

In March, Tesla imported a Model Y from Germany valued at $46,000, illuminating the tariff's impact, as it doubles the cost of the vehicle to consumers. Mr. Taneja highlighted the price anxiety, stating, "The same car which we're sending is 100% more expensive than what it is." He emphasized the company’s cautious approach to timing its entry into India, designating the market as "very hot."

The recent financial performance of Tesla revealed a 71% decline in net profit for the first quarter, further complicating its entry strategy. The company is engaged in discussions with Indian officials to potentially lower tariffs, with Prime Minister Modi's administration negotiating with the U.S. to address the 100% levies in a bilateral trade agreement.

While the United States advocates for the removal of these tariffs, it appears that India is hesitant to reduce the duties drastically, particularly given strong opposition from local automakers such as Tata Motors and Mahindra and Mahindra. Furthermore, Musk announced intentions to visit India this year, following a conversation with Prime Minister Modi regarding technology collaboration.

Previously, Musk had planned a visit to India to unveil a substantial investment of $2 billion to $3 billion, which included establishing a manufacturing facility for electric vehicles. Unfortunately, he canceled this trip at the last moment.

Expressing deep concern, Geng outlined the escalating crisis in Haiti, marked by rampant gang violence and a deteriorating state, which has led to a critical humanitarian situation for its citizens. During a special session, María Isabel Salvador presented a grim report detailing the staggering violence, with over 1,000 individuals killed and more than 1 million displaced since December, warning of an impending point of no return due to this escalating violence.

Geng’s remarks attributed a significant portion of the crisis to the historical interference of the United States, asserting that the U.S. has been the greatest external factor disrupting Haiti’s security and development. He condemned the American interventionist policies , which have included military deployments and the installation of puppet governments, asserting that the U.S. has consistently been the primary source of arms fueling gang violence in Haiti. He cited a recent report from the UN Office on Drugs and Crime illustrating that gangs in Haiti possess greater firepower than police forces.

Additionally, Geng criticized the U.S. for its lack of substantial contributions to the Multinational Security Support Mission, despite promises of financial assistance. He referenced the freezing of $13 million in aid by the Trump administration earlier this year as an example of the inconsistent support provided to Haiti.

In conclusion, the Chinese representative urged a reevaluation of U.S. actions in Haiti and emphasized that the future of Haiti should not be jeopardized for the U.S.'s strategic interests. He called for a commitment to effective, targeted assistance rather than superficial engagements, reaffirming support for collaborative efforts with regional organizations like Caricom and the UN Integrated Office in Haiti, to address the root causes of the ongoing crisis.

The 145% tariffs implemented by the United States on imports from China prompted a reciprocal 125% tax from China on American products. Despite these tensions, President Trump expressed optimism about enhancing trade relations with China, asserting that the tariffs would significantly decrease, although not entirely disappear. Ortberg stated that the halting of aircraft deliveries by China was a direct consequence of the prevailing tariff situation.

Boeing, recognized as America's largest exporter, relies on approximately 70% of its commercial aircraft sales from international markets. In response to the ongoing issues, Ortberg mentioned that the company is evaluating strategies to re-market 41 already produced planes to alternative customers, given the robust demand from other airlines. Additionally, there are nine planes not yet integrated into Boeing's production schedule, which he aims to redirect if necessary.

Boeing maintains close communication with the Trump administration regarding the trade conflict with China, emphasizing daily engagement with key government officials. Ortberg expressed hope for fruitful negotiations to resolve these trade disputes. Moreover, Treasury Secretary Scott Bessent opined that there is a chance for a significant trade agreement between the United States and China, contingent on China's willingness to reduce its dependence on manufacturing exports.

Additionally, Ortberg highlighted that other manufacturers in Boeing's supply chain are also affected by tariffs, particularly suppliers located in Japan and Italy, where universal tariffs of 10% are now in place. CFO Brian West underscored the importance of free trade policies for Boeing, expressing a commitment to collaborate with suppliers to ensure operational continuity. The company has reported improved financial performance in the first quarter of this year, attributed to higher production and delivery rates, with plans to ramp up production of its 737 MAX jets to 38 units per month by 2025.

Zambian customs officials apprehended a 27-year-old Indian citizen at Kenneth Kaunda International Airport attempting to transport over $2.3 million in cash and suspected gold valued at $500,000 to Dubai. The Drug Enforcement Commission (DEC) reported that the individual was intercepted by a multi-agency team, leading to ongoing investigations into the incident.

Inflation in Zambia expected to fall below 8% for first time since 2019

Zambia's inflation rate is projected to fall below 8% for the first time since 2019, with Secretary to the Treasury Felix Nkulukusa expressing confidence in reaching the central bank's target of 6-8% by year's end. This optimistic forecast follows a period of significant economic challenges, including a historic debt default and recent drought, suggesting a potential stabilisation of living costs for Zambians.

Zambian tech agencies urged to transition to paperless system

The Zambian Ministry of Technology and Science is advocating for a shift to paperless processes among its agencies, with Minister Felix Mutati emphasising the need for technological adaptation to improve service delivery. This initiative aims to eliminate manual systems and foster an environment conducive to economic transformation, reinforcing the importance of skills from the Technical Education, Vocational and Entrepreneurship Training Authority (TEVETA) in achieving these objectives.

U.S. tariffs threaten Zambian economy

The Zambia Consumer Association has warned that the U.S. tariffs—10% on African agricultural exports and 25% on copper imports—could severely impact the nation's trade prospects, reducing the competitiveness of Zambian products in foreign markets. Executive Director Juba Sakala highlighted existing issues, such as currency depreciation and rising costs of essential goods, exacerbated by the new tariffs.

Zambia faces mpox and cholera challenges

Zambia confirmed its second mpox-related death, with 49 total cases reported across six provinces. Health Minister Elijah Muchima stated that efforts are underway to trace and contain the outbreak while simultaneously addressing an increase in cholera cases, with 18 new cases bringing the total to 490 and nine deaths. The Ministry of Health, in collaboration with partners, is actively working to combat both public health challenges.

Trump remarked, "We’re in no rush," indicating his leverage originating from the desire of other countries to access the U.S. consumer market. He further expressed, “We have a lot of countries that want to make a deal. Frankly, they want to make deals more than I do.”

Meloni's engagement with Trump marked a significant moment, being the first European leader to meet with him after he announced a partial suspension of a 20% tariff on European imports. This meeting positioned her as a potential intermediary between the EU and the United States amid escalating trade tensions, which have raised recession concerns.

Portraying the U.S. and Europe as natural allies, Meloni emphasized the importance of resolving trade and national security disputes. The EU, defending its critical economic relationship with the U.S., totaling approximately €1.6 trillion ($1.8 trillion) annually, is pursuing a zero-for-zero tariff agreement with the Trump administration.

While Trump aims to leverage tariffs to negotiate favorable terms, he seeks to push back against claims that they are detrimental to the economy, claiming that prices on essentials like gasoline and eggs are decreasing. Conversely, concerns regarding inflation remain prevalent due to rising interest rates driven by market reactions to his tariff strategies.

The European Commission, responsible for trade negotiations, has already initiated talks with Trump's officials, although resistance persists regarding the administration's foundational 10% tariff policy. The Commissioner for trade, Maroš Šefčovič, highlighted the need for a collaborative effort between the U.S. and the EU to tackle tariff reduction and other trade barriers.

Experts suggest that Meloni's opportunity lies more in clarifying Trump’s objectives rather than obtaining concrete concessions. As a right-wing party leader, she shares ideological similarities with Trump, yet supports Ukraine post-invasion, in contrast to Trump’s views on military spending.

Despite differences on certain issues, Meloni is perceived as a crucial conduit to Europe during a tumultuous time for trans-Atlantic relations. The U.S. looks to her not only for insights on Italy’s marketplace but also for influence over broader European dynamics. Her previous attendance at Trump’s inauguration further solidifies her role, even as she expressed disapproval of the tariffs, warning that division within the West could have dire consequences.

Italy enjoys a €40 billion ($45 billion) trade surplus with the U.S., driven by a strong demand for Italian gourmet products and luxury items, which are vital to its economy. As global uncertainty mounts due to escalating tariffs, Italy's growth forecast has been adjusted downwards, reflecting the wider economic impact of trade wars initiated by the Trump administration.

Côte d’Ivoire is the second-largest cocoa producer in the world. The country sends between 200,000 and 300,000 tonnes of cocoa to the United States each year for the production of chocolate, among other things.

Côte d’Ivoire’s agriculture minister, Kouassi Adjoumani, warned that the country could raise the price of cocoa in response to the new U.S. tariffs. He said this would lead to higher chocolate prices for everyone.

“When you tax our product that we export to your country, we will increase the price of cocoa and that will have a repercussion on the price to the consumer,” he was quoted by the NorthAfrica Post .

The country already plans to cut cocoa exports because of poor harvests.

Heavy rains have hit cocoa farms two years in a row, damaging crops. Many farmers are also struggling with a disease called Cocoa Swollen Shoot Virus, which has reduced cocoa harvests by up to half in some areas.

Cocoa is very important to Côte d’Ivoire’s economy . It brings in about half of the country’s export income and gives jobs to one in five people in the country.

Experts believe Côte d’Ivoire may increase its cocoa export tax to deal with the new U.S. tariffs, which could push global cocoa prices even higher.

This, in other words, refers to investors turning to Taiwanese companies instead of mainland Chinese companies hit by US policies .

“The Trump administration also said yesterday that it wants to delist some Chinese publicly-traded companies from the US stock market,” Lin noted. “Now, as for whether these follow-up actions will lead to what's called the 'order-transfer effect' shifting to Taiwan, I think the chances are quite high.”

Lin attributed Taiwan's potential advantage to its more measured response in contrast to China’s confrontation with the U.S.

“All of this started with the fact that we did not adopt a tough strategy or directly confront the US,” he said. “As for Trump and the so-called tariff trade war with mainland China, I believe Taiwan has a very high chance of benefiting from it.”

The decision, part of Trump’s broader push to reset global trade on strictly bilateral terms, effectively guts the African Growth and Opportunity Act (AGOA)—a 25-year-old program designed to boost U.S.- Africa trade by waiving tariffs for qualifying African countries. With AGOA set to expire this September, the new tariffs may mark its premature and unilateral end.

South Africa

South Africa, Africa’s most industrialised economy, was hit with a 31% tariff on U.S. imports. Despite the blow, President Cyril Ramaphosa has ruled out retaliation, stating his government “will not act out of spite.” Instead, the country is seeking negotiations for exemptions or quota-based trade terms. “This move essentially nullifies the benefits we enjoyed under AGOA,” Ramaphosa said, adding that South Africa will “forge global alliances” to diversify its export partners. "To say we will impose reciprocal tariffs without first understanding how the U.S. arrived at 31% ... would be counterproductive," trade minister Parks Tau told a press conference , adding that South Africa’s average tariff on imports was 7.6%. According to local reports, South African citrus exporters—who rely heavily on the U.S. market—warn that up to  35,000 jobs  could be at risk due to the new tariffs.

Nigeria

In Nigeria, the continent’s largest economy, the Central Bank moved quickly to stabilise financial markets. On Sunday, it sold nearly $200 million to shore up the naira after global markets were rattled by the U.S. tariff announcement. A drop in global crude oil prices—sparked by fears of an impending slowdown in global trade—added pressure on the oil-dependent nation. “These tariffs have introduced new dynamics for oil-exporting countries such as Nigeria,” the Central Bank of Nigeria (CBN) said in a statement .

Smaller nations

While the tariffs are disruptive for larger economies, they could be devastating for smaller African nations like Lesotho, Mauritius, and Madagascar— low-income countries heavily reliant on textile and apparel exports to the U.S.

In a twist, the U.S. had originally helped build these countries’ industries by allowing them to import third-country fabrics duty-free under AGOA . That exemption has now been effectively erased.

“These new tariffs will cripple the apparel sectors in these countries,” noted trade analysts at the Center for Global Development. “The U.S. created the enabling environment for this growth, and is now abruptly pulling the rug out.”

Under Trump’s new rules, countries like Lesotho and Zimbabwe were hit with heavy duties.

Lesotho saw a 50% tariff, while Zimbabwe was given 18%. Many countries, including Canada, China and the European Union , responded by raising their own tariffs on American goods.

Following this, Zimbabwe’s president, Emmerson Mnangagwa announced that all tariffs on US imports would be dropped.

In a post on social media platform X , he said, “In the spirit of constructing a mutually beneficial and positive relationship with the United States of America, under the leadership of President Trump, I will direct the Zimbabwean government to implement a suspension of all tariffs levied on goods originating from the United States.”

This means US goods will now enter Zimbabwe without paying any extra tax at the border. However, this surprise move has raised serious questions.

Zimbabwe is part of the World Trade Organization (WTO), which says countries must treat all trading partners fairly.

That means Zimbabwe cannot give special treatment to the US unless it offers the same to every other WTO member. This rule is meant to stop countries from favouring certain partners.

The move could upset Zimbabwe’s trade with countries like China and South Africa , who might now demand similar treatment. It could also put Zimbabwe at odds with African trade groups such as the African Continental Free Trade Area.

Some experts worry that Zimbabwe’s factories and local businesses could suffer. US products might be cheaper and outcompete Zimbabwean goods, hurting the country’s economy and costing local jobs.

The government could also lose a lot of money. Tariffs bring in cash for the state, and dropping them could create a budget gap.

Zimbabwe might need to raise other taxes to make up for the lost income.

France follows with 24.4 million, and Italy ranks third at 21.8 million hectolitres. This reflects the lasting cultural and economic role that wine plays in traditional producers and newer markets.

Top 10 Wine-Consuming Countries (in million hectolitres):

USA – 33.3

France – 24.4

Italy – 21.8

Germany – 19.1

UK – 12.8

Spain – 9.8

Russia – 8.6

Argentina – 7.8

China – 6.8

Portugal – 5.5

Trump’s reciprocal tariffs could disrupt wine trade

As part of sweeping trade measures, the U.S. has announced average tariffs of 20% on a range of goods from the European Union, including machinery, vehicles, and wine. This action spells doom for the global trade and sale of wines.

With the U.S. leading global consumption and importing large volumes of European wine, the 20% tariff could sharply raise prices for consumers. Experts predict a shift toward domestic brands and New World wines (e.g., Chile, Australia) as French, Italian, and Spanish wines become less affordable.

Additionally, France, Italy, Spain, and Portugal—all in the top 10 wine-consuming and producing nations—could face significant export losses. For countries like Portugal, which consumed 5.5 million hectolitres but relies heavily on exports, this could destabilise parts of its economy.

Meanwhile, American wine producers might see short-term gains due to reduced competition, yet retaliatory tariffs from the EU could hurt U.S. wine exports, especially to top buyers like Germany and the UK.

With a baseline 10% tariff on all imports, which took effect April 5, 2025, and higher rates for specific goods and countries, global supply chains are being restructured in real time.

Top affected countries and sectors:

Country : China

Sectors affected : Electronics, steel, solar tech

Tariff rate : 54%

Country : Cambodia

Sectors affected : Garments, textiles

Tariff rate : 49% Country : Vietnam

Sectors affected : Electronics, clothing, footwear

Tariff rate : 46%

Country: Thailand

Sectors affected: Electronics, clothing, footwear

Tariff rate: 36%

Country: Indonesia

Sectors affected: Palm oil, textiles, minerals

Tariff rate: 32%

Country: Taiwan

Sectors affected: Semiconductors, tech components

Tariff rate: 32%

Country: India

Sectors affected: IT services, pharmaceuticals

Tariff rate: 26%

Country: South Korea

Sectors affected: Electronics, vehicles

Tariff rate: 25%

Country: Japan

Sectors affected: Auto industry, robotics

Tariff rate: 24%

Country: Malaysia

Sectors affected: Semiconductors, oil & gas

Tariff rate: 24%

Real-time impacts already in motion

1. Supply Chains Scramble to Adapt

Major U.S. retailers like Walmart and Target have already begun rerouting orders, with apparel firms shifting operations from Cambodia and Vietnam to Latin American countries like Mexico and Honduras to avoid steep tariffs.

2. Stock Market Volatility

U.S. tech giants such as Apple, Dell, and Tesla—heavily reliant on Chinese and Taiwanese components—have seen share price dips in anticipation of costlier imports. Analysts at Morgan Stanley predict a 0.5–0.7% drag on U.S. GDP if tariffs remain in place beyond Q3 2025.

3. Price Hikes for U.S. Consumers

Tariffs on electronics and consumer goods will inevitably raise prices for American households. The National Retail Federation estimates that the average American family will pay $1,200 more annually due to tariff-induced inflation , particularly on smartphones, appliances, and clothing.